The Assessee is in the business of purchases  purchase, sale, manufacturing and trading of gold jewellery and diamonds. The assesseee declared profit of 11.98%. The Assessing Officer rejected the books of account and estimated profit of 25% on account of alleged bogus purchases. CIT(A) affirmed the order of the AO. On appeal the Tribunal held that  the assessee’s books of account were not found defective and the AO accepted that in fact the assessee has purchased the goods. Assessee has placed on record quantitative details and bills and consequent payment details, and the lower authorities have not found any fault with the said details. Assessee has declared profit from the diamond and jewellery business @11.98 per cent as against the profit rate of 6 per cent recognized by CBDT vide Instruction No. 2 of 2008, dt. 22nd Feb., 2008 as the reasonable rate in the case of an assessees dealing in diamonds. Though the AO has invoked the provisions of s. 145(3), the assessment is made under s. 143(3) the assessee has  discharged its burden of proving the genuineness of book results. AO has not done any independent and proper investigation. Merely because the third person has stated that he is involved in issuing accommodation bills, the book results declared by the assessee which is better than the industry norms prescribed by the CBDT cannot be rejected. Addition is deleted. (AY. 2014-15)